Since the beginning of modern labor markets, formal and informal activities have coexisted alongside each other. However, most of the traditional approaches to informality are not fully able to explain the multiple forms by which this phenomenon manifests itself today in certain contexts. Informality in Latin American societies, particularly in Argentina, is heuristically revelatory for illustrating the need for a more complex definition and less rigid theoretical classifications. The main purpose of this article is to contribute to an empirical analysis about informality by addressing two points. First, the article provides a better understanding of the heterogeneous nature of informality—“involuntary” or “voluntary” informal work, “half-formal/half-informal” work—in the field of youth employment. Second, in connection with debates about the sources of informality, the article explores the hypothesis of the existence of state-created informality. The article illustrates these points at different levels: youth careers, employers’ recruitment strategies, and states policies. This perspective seems useful for identifying the actors involved, acknowledging the blurry boundaries between diverse informal situations, and understanding actors’ uses of them. The points are illustrated by evidence from a qualitative and longitudinal study on youth employment careers in Argentina. The article concludes with a discussion about some key issues of informality, such as legality, regulation and agency.